BINHAI INV (02886) and Sinopec Nova Energy Company sign a strategic cooperation agreement, achieving high-quality sustainable development. The future prospects are worth looking forward to.

BINHAI INV (02886), a wholly-owned subsidiary of Bin Tianjin, signed a three-year "Strategic Cooperation Agreement on Collaborative Development of Clean Energy Industry" with Sinopec's wholly-owned subsidiary Sinopec Xinxing New Energy Company. This agreement marks a key step for BINHAI INV in transitioning to a comprehensive energy provider, and it plays a significant and positive role in optimizing the company's business structure, enhancing profitability, shaping brand value, and driving long-term prospects. This collaboration strengthens the strategic relationship between BINHAI INV and Sinopec, further solidifying the results of the previous framework agreements on green hydrogen supply and deepening cooperation, reflecting the high recognition of the domestic energy leader for the business value, regional resources, and development potential of BINHAI INV. As a Sinopec's directly managed new energy professional platform, Sinopec Xinxing New Energy Company has technological, resource, project experience, and industry influence. The cooperation of both parties can achieve complementary advantages and open up new growth opportunities for the company. On the business front, the cooperation covers multiple dimensions of the clean energy sector, creating a stable growth curve for BINHAI INV. The "geothermal and natural gas+" multi-energy complementary supply mode, combined with Sinopec's technical strength in geothermal development and Bin Tianjin's advantages in the natural gas pipeline network and customer resources in the Tianjin Binhai New Area, can provide low-carbon heat services for centralized heating, industrial energy use, and low-carbon parks, broadening the application scenarios of existing natural gas businesses, reducing user costs, enhancing project returns, and forming replicable demonstration projects to gradually expand market coverage. Carbon asset joint development and trading businesses assist BINHAI INV in entering the high-growth green finance sector, creating green premiums for customers through the development of clean development mechanisms (CDMs), verified carbon standards (VCS), carbon footprint certification, and green natural gas certification services, while also bringing new sources of profit and enhancing business risk resistance. In addition, Sinopec Xinxing New Energy Company will leverage its advantages in integrated green electricity project construction to provide technical support and solutions for Bin Tianjin projects nationwide. At the strategic level, this cooperation accelerates BINHAI INV's long-term strategic transformation into a comprehensive energy provider. With the deep coordination with Sinopec, BINHAI INV, which used to have a relatively concentrated business, is now building a diversified comprehensive energy system of "natural gas + geothermal + green electricity + carbon assets + green hydrogen," improving the industry chain layout, enhancing overall competitiveness, aligning with the national "dual carbon" strategy and energy transition trend, seizing policy dividends and market opportunities. In the long run, a diversified business structure can reduce the risk of fluctuations in a single business, enhance profit stability and sustainability. On the brand and capital market level, reaching a strategic cooperation agreement with a top domestic energy company significantly enhances the company's brand image and market position in the industry, boosting the confidence of customers, investors, and partners. A stable and forward-looking strategic layout helps the company achieve a more reasonable valuation in the capital market, creating sustained and steady value returns for shareholders. The flexible and diverse cooperation mechanism, covering equity, technology, funds, and market development modes, establishes regular communication and professional project teams to ensure efficient cooperation and lay a solid foundation for the implementation of specific projects. Overall, this strategic cooperation is not only a fulfillment of the commitment from the two major shareholders, Tianjin TEDA and Sinopec, to further deepen strategic cooperation and support the company's development as outlined in the March framework agreement but also constructs a clear path for the long-term development of BINHAI INV, driving the company's upgrade from a traditional natural gas operator to a national comprehensive clean energy provider, seizing opportunities in the industry transformation, achieving high-quality, sustainable development, and promising prospects. This article is reprinted from "Asdaq Finance," author: Zhang Zhiwei; GMTEight editor: Feng Qiuyi.